Chart EUR/USD Update: Short-term consolidation before lower
Steady
EURUSD
losses have reached the 1.2129 weekly low of 21 December, where unwinding oversold intraday studies are prompting short-term consolidation.
A minor corrective bounce is possible, but negative daily stochastics and the falling Tension Indicator should keep gains capped below congestion around 1.2200
Following consolidation, expectations are for January losses to resume, with a later close below 1.2129 adding weight to sentiment and opening up the 1.2065 Fibonacci retracement and 1.2059 weekly low of 9 December.
EURUSD
losses have reached the 1.2129 weekly low of 21 December, where unwinding oversold intraday studies are prompting short-term consolidation. A minor corrective bounce is possible, but negative daily stochastics and the falling Tension Indicator should keep gains capped below congestion around 1.2200
Following consolidation, expectations are for January losses to resume, with a later close below 1.2129 adding weight to sentiment and opening up the 1.2065 Fibonacci retracement and 1.2059 weekly low of 9 December.
We are an award winning independent research firm, covering Macroeconomics, Policy and Financial Markets. Our Technical Analysis coverage spans 40 FX pairs across developed and emerging markets. Register for a free trial at www.continuumeconomics.com